There have been several major accomplishments within the past fiscal year. The activation of 7 nAChRs has been shown to improve hippocampal-dependent learning and memory. However, the molecular mechanism of 7 nAChRs' action remains elusive. We previously reported that activation of 7 nAChRs induced a prolonged enhancement of glutamatergic synaptic transmission in a PKA-dependent manner. Here, we investigated any connection between the activation of the 7 nAChR and cAMP signaling in hippocampal neurons. To address this question, we employed a FRET-based biosensor to measure the intracellular cAMP levels directly via live cell imaging. We found that application of the 7 nAChR-selective agonist choline, in the presence of the 7 nAChR positive allosteric modulator PNU-120596, induced a significant change in emission ratio of F535/F470, which indicated an increase in intracellular cAMP levels. This choline-induced increase was abolished by the 7 nAChR antagonist MLA and the calcium chelator BAPTA, suggesting that the cAMP increase depends on the 7 nAChR activation and subsequent intracellular calcium rise. The selective AC1 inhibitor CB-6673567 and siRNA-mediated deletion of AC1 both blocked the choline-induced cAMP increase, suggesting that calcium-dependent AC1 is required for choline's action. Furthermore, 7 nAChR activation stimulated the phosphorylation of synapsin, which serves as a downstream effector to regulate neurotransmitter release. Our findings provide the first direct evidence to link activation of 7 nAChRs to a cAMP rise via AC1, which defines a new signaling pathway employed by 7 nAChRs. Our study sheds light into potential molecular mechanisms of the positive cognitive actions of 7 nAChR agonists and development of therapeutic treatments for cognitive impairments. Second, the hippocampal theta rhythm emerges as rhythmic and synchronized activities among the hippocampus and hippocampus-associated brain regions during active exploration, providing a potential means for inter-regional communication. However, after decades of research, the origins of the theta rhythm remain elusive, at least partly due to the difficulty in recording from all three essential regions for theta generation, namely the hippocampus itself, the septum, and the entorhinal cortex. For this reason, we established an in vitro theta model in a septo-entorhinal-hippocampal brain slice tri-culture system by pairing septal cholinergic inputs with hippocampal local activities. Our study shows that the local entorhinal cortical circuit may play an active and critical role in hippocampal theta rhythm generation. Our study also reveals a potential mechanism for theta rhythms to emerge as the functional results of dynamic interactions among the septum, hippocampus, and the entorhinal cortex, in the absence of clear pace makers. Lastly, the basal forebrain (BF) is an important regulator of hippocampal and cortical activity. In Alzheimer's disease (AD), there is a significant loss and dysfunction of cholinergic neurons within the BF, and also a hypertrophy of fibers containing the neuropeptide galanin. Understanding how galanin interacts with BF circuitry is critical in determining what role galanin overexpression plays in the progression of AD. Here, we examined the location and function of galanin in the medial septum/diagonal band (MS/DBB) region of the BF. We show that galanin fibers are located throughout the MS/DBB and intermingled with both cholinergic and GABAergic neurons. Whole-cell patch clamp recordings from MS/DBB neurons in acute slices reveal that galanin decreases tetrodotoxin-sensitive spontaneous GABA release and dampens muscarinic receptor-mediated increases in GABA release in the MS/DBB. These effects are not blocked by pre-exposure to -amyloid peptide (A1-42). Optogenetic activation of cholinergic neurons in the MS/DBB increases GABA release back onto cholinergic neurons, forming a functional circuit within the MS/DBB. Galanin disrupts this cholinergic-GABAergic circuit by blocking the cholinergic-induced increase in GABA release. These data suggest that galanin works in the BF to reduce inhibitory input onto cholinergic neurons and to prevent cholinergic-induced increase in inhibitory tone. This disinhibition of cholinergic neurons could serve as a compensatory mechanism to counteract the loss of cholinergic signaling that occurs during the progression of AD.